Options Exercise: Adel Mekhail At Prestige Consumer Realizes $214K

A large exercise of company stock options by Adel Mekhail, EVP at Prestige Consumer PBH was disclosed in a new SEC filing on November 15, as part of an insider exercise.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Friday revealed that Mekhail, EVP at Prestige Consumer in the Health Care sector, exercised stock options for 5,565 shares of PBH stock. The exercise price of the options was $44.33 per share.

Prestige Consumer shares are trading down 0.0% at $82.79 at the time of this writing on Friday morning. Since the current price is $82.79, this makes Mekhail's 5,565 shares worth $214,029.

All You Need to Know About Prestige Consumer

Prestige Consumer Healthcare is one of the largest pure-play over-the-counter healthcare providers. It has a diverse portfolio composed of leading brands in niche consumer health categories. Prestige's key brands include Clear Eyes (redness relief), Dramamine (motion sickness relief), Monistat (vaginal anti-fungal), and Summer's Eve (feminine hygiene), and many of its brands enjoy category leadership and recommendations from medical professionals. The firm mainly plays in North America where it generates roughly 85% of its total revenue, and the remaining sales come from Australia, New Zealand, and certain Asian markets.

Understanding the Numbers: Prestige Consumer's Finances

Revenue Growth: Prestige Consumer's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2024, the company experienced a revenue decline of approximately -0.88%. This indicates a decrease in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.

Profitability Metrics: Unlocking Value

• Gross Margin: The company shows a low gross margin of 55.46%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Prestige Consumer's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 1.1.

Debt Management: Prestige Consumer's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.61.

Valuation Overview:

• Price to Earnings (P/E) Ratio: The P/E ratio of 20.19 is lower than the industry average, implying a discounted valuation for Prestige Consumer's stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 3.74, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 14.33, Prestige Consumer presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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Navigating the Impact of Insider Transactions on Investments

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Navigating the World of Insider Transaction Codes

Examining transactions, investors often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Prestige Consumer's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.